Hacker Who Stole $5.8M From Loopscale Agrees to Return Funds
Date: 2025-04-29 Author: Gabriel Deangelo Categories: BUSINESS
A few days after the attack on the Loopscale lending protocol, it became known that the hacker who withdrew $5.8 million in crypto assets accepted an offer to return the funds. The attack occurred shortly after the official launch of the protocol, which took place on April 10, ending a six-month closed testing.
The attacker used the mechanism of unsecured loans and manipulation of the pricing of RateX PT tokens to withdraw 5.7 million USDC and 1,200 SOL. Despite the scale of the incident, the RateX token collateral system was not breached. The main blow fell on users whose funds were in the USDC and SOL pools.
In response to the attack, the Loopscale team immediately suspended deposit and withdrawal operations and initiated an internal investigation with the participation of law enforcement agencies. However, the developers went to meet the hacker, promising no legal action in the event of a voluntary return of assets by April 28. This measure was successful - the attacker agreed to the proposed terms.
At the time of the hack, assets worth about $40 million were blocked in the Loopscale system, of which the attack affected about 12%. Earlier, the project underwent a security audit at OShield, which identified a number of critical vulnerabilities. According to a statement from Loopscale, all identified issues were promptly fixed. In addition, another audit was conducted during the exploit - this time by Sec3 specialists.
The Loopscale incident was the latest in a series of attacks that have shaken the cryptocurrency sector in recent months. Thus, in March, the decentralized protocol Abracadabra Finance lost 6,260 ETH, equivalent to $13 million. And in February, the largest theft in the history of the crypto market occurred - funds worth $1.4 billion were withdrawn from the Bybit exchange.
The increase in the number of such attacks indicates an exacerbation of security problems in the industry and the need to strengthen protection even for new, audited projects.
